Posted: September 11th, 2015

Role of budgets in managing organisations

DETAILED INFORMATION: “Budgets are often simultaneously used for the conflicting purposes of planning and performance evaluation” (Arnold & Gillenkirch 2015, p.1).

With reference to the above quotation, critically review the various roles that budgets play in organizations from a management accounting perspective.

Arnold, MC & Gillenkirch, RM 2015, ‘Using negotiated budgets for planning and performance evaluation: An experimental study’, Accounting, Organizations and Society, vol. 43, pp. 1-16.

– Clearly introduce the topic and outline the objective of the assignment.
– Discuss the development and implementation of budgets within an organization (this discussion is to include how the different objectives of budgets can influence their development).
– Undertake a critique of budgeting (and the differing roles of budgets) and demonstrate an understanding on how to critique (that is challenge taken-for-granted assumptions not just criticize)
– Discuss  in the context of management’s needs, the conflicting purposes of planning and evaluation.
– The arguments are logical and support their point of view.

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